Thursday, August 22, 2019

EIA: "Natural Gas Weekly Update"

From the U.S. Energy Information Administration:
for week ending August 21, 2019   |  Release date:  August 22, 2019 
(For the week ending Wednesday, August 21, 2019)
  • Natural gas spot prices rose at most locations this report week (Wednesday, August 14 to Wednesday, August 21). Henry Hub spot prices rose from $2.15 per million British thermal units (MMBtu) last Wednesday to $2.25/MMBtu yesterday.
  • At the New York Mercantile Exchange (Nymex), the price of the September 2019 contract increased 3¢, from $2.143/MMBtu last Wednesday to $2.170/MMBtu yesterday. The price of the 12-month strip averaging September 2019 through August 2020 futures contracts climbed 1¢/MMBtu to $2.329/MMBtu.
  • Net injections to working gas totaled 59 billion cubic feet (Bcf) for the week ending August 16. Working natural gas stocks are 2,797 Bcf, which is 15% more than the year-ago level and 4% lower than the five-year (2014–18) average for this week.
  • The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 23¢/MMBtu, averaging $4.10/MMBtu for the week ending August 21. The price of ethane, propane, butane, and isobutane fell by 2%, 5%, 11%, and 19%, respectively. The price of natural gasoline rose by 2%.
  • According to Baker Hughes, for the week ending Tuesday, August 13, the natural gas rig count decreased by 4 to 165. The number of oil-directed rigs rose by 6 to 770. The total rig count increased by 1, and it now stands at 935.


Prices rise with warmer weather. This report week (Wednesday, August 14 to Wednesday, August 21), Henry Hub spot prices rose 10¢ from $2.15/MMBtu last Wednesday to $2.25/MMBtu yesterday. Temperatures across the Lower 48 states were generally warmer than normal; they were much warmer than normal across most of Texas and a bit cooler than normal across the Great Plains.

Midwest prices rise slightly. At the Chicago Citygate, prices increased 8¢ from $2.00/MMBtu last Wednesday to $2.08/MMBtu yesterday. Kinder Morgan’s Natural Gas Pipeline Company of America (NGPL) declared a force majeure on Tuesday between Compressor Stations 104 and 105, stretching across most of Kansas, north of Wichita. Several other outages are in effect across the system, constraining downstream flows. According to Genscape, the restrictions will reduce flows by half (e.g., current operational capacity of 439 MMcf/d at Compressor Station 103 flowed an average of 906 MMcf/d in the 30 days before the incident).....

 Mean Temperature Anomaly (F) 7-Day Mean ending Aug 15, 2019
Front futures (Sept):  2.149 -0.021
EIA Weekly Natural Gas Storage Report